RS McColl to sell 100 shops

McColl’s Retail Group said the move was part of a strategy to its switch to convenience stores.

The firm, which operates 33 stores across the north and north-east, did not disclose which of its stores it aims offload to independent retailers.

The effect on jobs is unclear depending on the success of the sale of the businesses.

The group said the assets would be sold for no less than their asset value and their closure is expected to be earnings neutral in 2016.

It added that it would “continue to run profitable newsagents and convert these to convenience format where appropriate”.

McColl’s chief executive James Lancaster claimed the 100 stores, which make up almost 8 per cent of its portfolio, are no longer part of the retailer’s longterm strategy, adding that the firm would use funds raised to invest in profitable convenience stores.

“We have continued to make good progress on enhancing our offering and capturing growth in the convenience market.

“As we continue to grow our convenience store estate we constantly review our wider store portfolio, and from this we have identified 100 newsagents which no longer align to our strategic objectives.

“The sale of these stores will generate funds which will allow us to invest further in profitable convenience stores.”

The sale will be handled by property specialists Christie + Co.